The team is joined by GuestKats Mirko Brüß, Rosie Burbidge, Nedim Malovic, Frantzeska Papadopolou, Mathilde Pavis, and Eibhlin Vardy
InternKats: Rose Hughes, Ieva Giedrimaite, and Cecilia Sbrolli
SpecialKats: Verónica Rodríguez Arguijo (TechieKat), Hayleigh Bosher (Book Review Editor), and Tian Lu (Asia Correspondent).

Wednesday, 9 December 2009

Sudden U-turn -- UK government not so bad after all

Following the IPKat's previous post, he has been deluged with emails telling him that the taxation of patent income at 10% is a good thing, not a bad one, since the current level of taxation under Corporation Tax is 28%. The Kat was under the impression from the first bits of news he received that the 10% was in addition to, rather than instead of, the current tax.

Thanks to the very many of you who have emailed, posted comments etc.
Further news of the pre-budget report can be retrieved from the Olswang Budget Blog here.


Anonymous said...

Like I would trust any other "analysis" from you after that idiotic error.

Kevin Cordina (Olswang) said...

Interestingly (maybe) it only applies to patents granted after the legislation is passed.

There could therefore be big financial rewards for putting the brakes on applications currently getting close to grant... which rather contradicts with the clamour to speed everything up.

Anonymous said...

So by cross licensing bogus patents (or patent applications even), companies will now be able to effectively reduce their taxation level from 28% to 10%?

Reminds me of the trick, applicable at least to the US, to donate "valuable" bogus patents to academic institutions in order to earn a tax deduction equal to their "value".

Anonymous said...

As indicated here:

Pre-Budget Report

"The Government will consult with business in time for Finance Bill
2011 on the detailed design of the Patent Box, which will apply to patents granted after the
legislation is passed."

My suggestion for a suitable design would be the Tardis - looks small from the outside but is capable of swallowing up an enormous volume. Just right for corporation tax dodgers.

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